[DonQuigleone]

Originally Posted by SaintessHeart

1. Mister, when your order cannot get filled completely, it gets CANCELLED after a certain period of time. And I stated bid price, know what is bid price and what the question means?
2. If nobody wants to sell, you can't buy. Similarly in No.1, your position is NOT FILLED. The sellers probably won't want to sell too because they are waiting for someone else to go first.
3. You are really a frog in the well on this one. When the person opens the counter at a later time, the price can move but you can't liquidate or set up a position. This can be disastrous if you are holding a losing position and got gapped - this is how you lose money beyond your stop loss.
4. Spread indicates volatility. If the spread widens due to increased transaction, the price will probably change faster than you can act. And for investors, it is not a good price because it moved too much at that moment of time.
5. If the stock you own gets acquired or delisted, you either own new shares from the new company, or get small cash payout at a flat rate per share you own. If the company decides to acquire the company, throw away the name and take it's brand/product line, you get nothing. If it gets delisted.......I don't think I have to explain further, you know what it means.
6. Do you know what gapping is and what it can do to you?

7. Do you know WHAT ARE the implications of owning the commodity IN REAL? And what is option/futures assignment?

1. Well firstly, you don't set an actual asking price, you set a limit. The broker chooses the relevant price for you. So if the current price doesn't fill the order, the broker proceeds downwards to lower bids, until you hit the limit, or run out of stocks to sell. You can have a partially filled order. Those are only prevented by setting it as "all or none".
2. That's what I said. However that situation is rare due to market makers
3. Yes, but I see no definition of counter (and I've searched investopedia...), and you haven't explained who "the person" is. Is it another seller? Another buyer?
4. Yes, but I thought you were asking what you'd do if you were a seller in that situation, there you're forced to take a loss.
5. Indeed.
6. It's "invisible" market movements that take place between market opening and market closing, often caused by the aforementioned after hour sales. "Gapping" is a market movement that you have no way to pre-empt, and I can imagine is annoying.
7. Inventory Costs. Don't buy stuff if you can't quickly shift it! First rule of warehousing and Lean. Options are optional, futures are obligatory. IE an Option gives you the right to claim an asset, the future means you must take it. Generally, it's a lot more efficient to speculate on a commodity using a future, because you don't have to hold it in inventory...

This is really serious. The problems I have pointed out to you, and you blatantly just sweep them as a Q&A? Why don't you think about the answers and ask yourself about it?

If you ask questions, expect answers. If you wanted to be more straightforward, you could explain "this is a problem because x, y, z etc.", I thought the point of the questions was so I figure out the problems myself, which I did to my best ability.

Section 4 :
The problem with us is nothing more than human error as we went down the road and realised; we had people who followed us and did worse. They tried to "learn from our mistakes" and did another set of mistakes - some even bought on margin to attempt to recoup their losses; when we ask them why they broke the rules they set their answer is "don't know". For those who did well, there are a couple of usury cases where the person whose name was used as an account changed the PIN and declared the money all his. Under the law, the others couldn't get it back because it is an illegal fund.

That sounds fairly disastrous all right. But I thought it was only $1000 on the line. I could understand people behaving that way over larger sums but...

Then again, I've seen the ugly side of inter-person politics. I've seen people threaten one another with absurd stuff over positions in student societies. That's my main fear with group endeavours. But I've never had such issues with very small groups.

What you THINK you can do that we can't is hindsight, which is always 20/20. When it gets down to brass tacks, it never gets done. No sooner will you find a leech in your group and start witch-hunting, or start marginalising the person who always give the suggestions that work only once in a while, and then having second thoughts whether to trust him at all : that is how money can change people.

I've seen similiar shit happening in University societies. But this stuff happens in work places too. None of it is unique to investing groups. As soon as people are working together, things can go really wrong. The bigger the group, the more likely it is to go wrong.

Take my sister, she set up a very succesful story telling event. All was going well, my mom served as the treasurer to the group. Fast forward a year later, and some small sub-group decides to push both my mom and sister out of the group they created through a "democratic" process. People can be really shitty.

Don't do it. Stop being such a bigot, delivering nonsense and semantics in your arguments and LISTEN to someone who has gone through this agonising experience - you will end up losing more important things than money if it falls through; if you don't know what else you will lose, you shouldn't be in the market at all. The risk on your social life and emotional prospects is not worth it at all.

While your own story is quite a compelling story, otherwise you're just giving me a lot of doom and gloom. Maybe it's bigoted of me, but I think, provided the right controls are in place, the process can work. The failures you elaborate are very very real, but they are not inevitable. But on the other hand, I also find a lot of positive articles about investment clubs online. The benefits Investopedia elaborates on outweighs the risks to my mind, and I've already seen the worst of group of politicking already (trust me on that, I knew one auditor who was a psychopath who would get rid of anyone who disagreed with him about the most minor of things, that ended out including me...).

Maybe you were just unlucky?